Coping with Loss In Retirement
September 22, 2022
One of the most difficult things you can face in life is losing a loved one. You spend years planning for retirement, but nothing quite prepares you for the death of a spouse. Aside from the obvious emotional component, losing your partner could leave you in a difficult financial situation.
Here are some of the financial factors that could be impacted by the loss of a spouse:
Individual Retirement Accounts (IRAs)
“Individual retirement accounts (IRAs) are generally not covered in your will. So when you open an IRA, you should complete a beneficiary designation form.”1
401(k) Plan
“The recipient’s options with a 401(k) are basically the same as with an IRA—keep it, roll it over somehow, cash it out (a non-spousal beneficiary must do this within a decade), or decline to receive it.”1
Estate Taxes
“If you pass away in 2022, your beneficiaries wouldn’t be affected by federal taxes if the total value of your estate is $12.06 million or less.”2
Social Security
“Social Security will pay a one-time death benefit of $255 to your spouse if they have been living in the same house as you. If there is no spouse, your child or children can receive the benefit.”3
The best thing you can do is speak with your spouse now and create a plan that outlines your wishes for your assets. A financial professional can help you with the rest. This could help protect your family’s financial future and provide you with added peace of mind.
We are happy to help answer any questions you may have. Please contact us today to schedule your complimentary consultation. We look forward to meeting with you!